FX Update: The dollar picked up bids
FX Update: The dollar picked up bids during the London AM session after posting intraday lows in pre-Europe trading. EUR-USD ebbed to the 1.1255 area, down from the intraday high at 1.1275, leaving yesterday's eight-day high at 1.1285 unchallenged. Above-forecast May Eurozone production data had only a fleeting impact on EUR-USD, though the Euro ground out gains against most other currencies. USD-JPY settled to around 108.30-35 after printing a high at 108.61. The high extended the recovery from the one-week low seen yesterday at 107.86. The Canadian dollar outperformed, pushing USD-CAD down for a third consecutive day, to a nine-month low at 1.3018, extending losses from the two-week high seen on Wednesday at 1.3144. A close today at or below 1.3084 today would rack up another weekly decline. On the trade front, Beijing announced that it will be sanctioning U.S. companies selling arms to Taiwan, accusing the U.S. of being in "total disregard" of sensitivities with regard to Taiwan. The agenda for the rest of the day is pretty quiet, highlighted by the release of June PPI data out of the U.S.